Moody's assigns B2 to Synthon, loans

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Stamina BidCo BV (Synthon) the top entity of Synthon's restricted group, following the planned refinancing. The agency also assigned a B2 rating to Synthon's new €360 million senior secured term loan B due 2028 and its €70 million senior secured revolver due 2028.

“The B2 rating reflects Synthon's leading position in the niche business-to-business (B2B) segment of development and manufacturing of generics; its solid market shares in the main Western European geographies for its top five products; the barriers to entry and customer stickiness derived from its intellectual property (IP) on developed products; a strong track record of quality and reliability resulting in longstanding relationships with major European generics pharmaceutical companies; and adequate liquidity profile including Moody's expectations of Moody's adjusted free cash flow (FCF) around €15 million-€20 million over the next 12 to 18 months, the agency said in a press release.

Synthon also plans to refinance its capital structure, which was put in place at the time of the change in ownership in 2019 when BC Partners acquired a majority stake in the company.

Term loan proceeds will be applied to the repayment of €290 million of debt and the payment of transaction related fees and expenses, with the balance kept on balance sheet and earmarked to fund a €70 million earn-out payment relating to Glatiramer's successful approval in the U.S., expected later this year. If the earn-out payment does not become due, Moody's said it expects the cash would be paid as a dividend to shareholders.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.